EXEMPTION REQUIREMENTS Clause Samples
The Exemption Requirements clause defines the specific conditions under which a party may be excused from fulfilling certain obligations outlined in the agreement. Typically, this clause details the criteria or documentation needed to qualify for an exemption, such as providing evidence of compliance with alternative standards or demonstrating that a particular requirement does not apply due to unique circumstances. Its core practical function is to provide a clear process for obtaining relief from certain contractual duties, thereby ensuring fairness and flexibility while maintaining the integrity of the agreement.
EXEMPTION REQUIREMENTS. At all times the following shall operate as conditions restricting the operations and activities of the Corporation:
1. No part of the net earnings of the Corporation shall inure to the benefit of, or be distributable to its members, trustees, officers, or other private persons, except that the Corporation shall be authorized and empowered to pay reasonable compensation for services rendered, and to make payments and distributions in furtherance of the purpose set forth in Article II (Purpose) hereof.
2. No substantial part of the activities of the Corporation shall constitute the carrying on of propaganda or otherwise attempting to influence legislation, or any initiative or referendum before the public, and the Corporation shall not participate in, or intervene in (including by publication or distribution of statements), any political campaign on behalf of, or in opposition to, any candidate for office.
3. Notwithstanding any other provisions of this document, the Corporation shall not carry on any other activities not permitted to be carried on (a) by an organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, or corresponding sections of any future federal tax code, or (b) by an organization, contributions to which are deductible under Section 170(c)(2) of the Internal Revenue Code, or corresponding section of any future federal tax code.
EXEMPTION REQUIREMENTS. 5.1 It is understood and agreed by the parties hereto that, in order to comply with section 51 of the Securities Act (Quebec), any of the Preferred Shares to be exchanged by the Vendors into the Exchange Shares, will be exchanged in such number and such amounts so that the minimum value of any such issuance of the Exchange Shares will be CDN$150,000.
5.2 It is understood and agreed by the parties hereto that, should any of the Vendors be unable to comply with the requirements of Section 5.1 of this Agreement, GlobalNetCare will make reasonable efforts to obtain an order from the Quebec Securities Commission exempting any such Vendor from the prospectus requirements of the Securities Act (Quebec) in regards to any Exchange Shares issued on exchange of that Vendor's Preferred Shares.
EXEMPTION REQUIREMENTS. The Purchaser has been independently advised as to the applicable hold period and restrictions with respect to trading imposed in respect of the Shares by securities legislation in the jurisdiction in which it resides.
EXEMPTION REQUIREMENTS. 4.1 It is understood and agreed by the parties hereto that, in the absence of an effective registration statement covering the Northwest Common Shares or an available exemption from registration, the Northwest Common Shares must be held for a one year period. Further, Canadian residents may require further exemptions to resell their Northwest Common Shares.